Speech by Governor Waller on the economic outlook, full text here:
- ‘Good news’ rate cuts remain possible later this year
- Rate cut view rests on easing inflation, tariffs on lower end of range
- Strong economy through April gives Fed time to see how trade shakes out
- Tariffs likely to create one-time price increase Fed can look through
- Considerable uncertainty still surrounds trade policy outlook
- Sees downside risk to economy, job market, upside risk to inflation
- Tariffs to be main driver of inflation this year
- Tariffs will drive up unemployment which will likely linger
- Tariff inflation impact likely greatest in second half of 2025
- 01 Jun 2025 08:00:00 PM – Fed’s Waller says he is most attentive to market and forecaster views on inflation
- Doesn’t see real world issues with expected path of inflation
- Some of modest sized tariff regime will not be passed along
This article was written by Eamonn Sheridan at www.forexlive.com.
